Canada · Delayed Price · Currency is CAD Endeavour Silver Earnings Call Transcripts
Fiscal Year 2025
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2025 saw record revenue and production growth, driven by Kolpa acquisition and Terronera's ramp-up, while a strong balance sheet supports major investments in Pitarrilla. Costs are expected to decline in 2026 as operations stabilize and expansion projects advance.
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Q3 saw a transformational boost in production and revenue, driven by Terronera's commercial launch and Kolpa's integration. Despite higher costs and a net loss from derivative contracts, free cash flow is expected in Q4, with future investment focused on Pitarrilla.
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Silver production is set to grow from 8 million ounces in 2024 to 20 million in 2026 and over 30 million by 2030, driven by new projects and acquisitions. Terronera and Kolpa are expected to transform cash flow and cost structure, while Pitarrilla offers major long-term upside.
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Q2 2025 saw a 46% revenue increase and 13% higher silver equivalent production, driven by the commissioning of Terronera and Kolpa's integration. Despite a net loss due to commissioning and non-cash items, commercial production at Terronera is imminent, with strong growth expected by 2026.
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Q1 2025 delivered strong production and stable revenue, with Terronera entering commissioning and Kolpa acquired to boost future output. Net loss was driven by non-cash gold hedge impacts, while cash and working capital remain under close watch during ramp-up.
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The acquisition of Kolpa, a fully funded producing mine in Peru, supports the goal of becoming a senior silver producer, adds significant resource potential, and diversifies the portfolio. The $145 million deal is expected to close in Q2 2025 and will boost annual silver equivalent output by 5 million ounces.
Fiscal Year 2024
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Silver equivalent production hit 7.6M oz in 2024, with revenue up 6% to $218M and adjusted net earnings of $8M. Terronera construction reached 89% completion, targeting Q3 2025 commercial production, while Pitarrilla advances with a $26M 2025 budget.
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Q3 2024 saw higher revenue and adjusted income, despite a trunnion failure at Guanaceví reducing capacity. Terronera construction is 77% complete and on track for year-end commissioning, with strong community engagement and robust cash reserves.
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Q2 2024 saw strong revenue growth from higher metal prices but a net loss due to non-cash derivative losses and rising costs. Terronera construction is 65% complete and on track for Q4 commissioning, with further project spending and debt drawdowns expected in Q3.